2025 South Dakota General Contractor License Requirements

Are you planning to get your South Dakota general contractor license? If so, you’re in the right place. This blog post will provide you with all the information you need to know about getting your South Dakota general contractor license in 2025. We’ll cover the requirements, application process, fees, and more, so that you can become a licensed contractor in the state of South Dakota. So read on to find out what you need to do to become a South Dakota General Contractor in 2025.

Who Needs A South Dakota General Contractor License

When it comes to general contractor licenses in South Dakota, the state leaves the majority of licensing up to the local jurisdictions. This means that if you're planning on becoming a general contractor in South Dakota, you won't need a license issued by the state itself.

While there are no state-issued licenses for general contractors in South Dakota, that doesn't mean there are no requirements or registrations to consider. All contractors engaged in construction in South Dakota need to register for a South Dakota Contractor's Tax License with the South Dakota Secretary of State. Additionally, some individual cities and counties may issue residential building licenses. It's important to check with your local jurisdiction to understand their specific requirements and processes.

How To Get a South Dakota Contractor License At a Local Level

If you're looking to get a South Dakota contractor license at the local level, there are a few things you need to know. Each city in South Dakota has its own requirements and regulations for contractors, so it's important to be familiar with the rules in your specific area. Below are some of the requirements for South Dakota’s most populated cities: 

Brookings, SD

In Brookings, South Dakota, the scope of licensed contractors is restricted to plumbing and residential contractors. Applicants will utilize the same paper application method employed by circuses, carnivals, and pawnbrokers.

For plumbing contractors:

• Payment of a $50 fee
• Submission of evidence for a $1,000 bond
• Copy of a state-issued plumbing contractor license
• Submission of evidence for $50,000/$100,000 general liability insurance

For residential building contractors:

• Payment of a $75 fee
• Provision of a tax excise number
• Presentation of proof for worker’s compensation insurance
• Submission of proof for liability insurance amounting to $500,000 or more for each occurrence

Sioux Falls, SD

In contrast to the state's more relaxed approach, Sioux Falls takes a stringent stance on licensing. All contractors engaged in projects concerning residential one and two-family homes, necessitating permits, must carry licenses. These will be granted by the Building Division of the City's Planning and Development Services..

Residential Building Contractor License:

• To secure this license, applicants are required to pass the Construction Supervisor Examination, conducted by the city as an open-book test.
• Prerequisites include completing the residential business contracting license application, presenting proof of a $20,000 bond, furnishing evidence of $300,000 general liability insurance, and remitting the $75 application fee.

Electrical Contractors License:

• Complete the electrical contractor's license application
• Provide evidence of a $10,000 bond
• Submit the $75 application fee

Plumbing Contractors License:

• Fill out the master plumbers license application
• Present proof of a $10,000 bond
• Remit the $75 application fee

Watertown, SD

In Watertown, South Dakota, the Community Development Building Services Department solely mandates licenses for residential building contractors. Once the online application is completed, contractors must additionally fulfill the following criteria:

• Payment of a $60 fee
• Presentation of evidence for a $500,000 liability insurance policy
• Verification of worker's compensation insurance

Penalties for Unlicensed Contractors in South Dakota

Contractors who do not carry the appropriate license are guilty of a Class 1 Misdemeanor, which can lead to fines of up to $1,000 and a potential jail sentence of up to one year. But it doesn't end there. If you continue to work as an unlicensed contractor, the fines can skyrocket to up to $4,000 and you may face a maximum jail sentence of two years. It's important to note that each municipality has the authority to impose its own fines and penalties, so the consequences may vary depending on where you're operating.

Leveraging your license on Houzz

Now that you know the South Dakota general contractor license requirements it’s time to start thinking about how you can promote your license to potential clients. Everyone who’s anyone knows the value of a blue checkmark on social media. That’s what the green Verified License Badge is for businesses on Houzz Pro. With one glance, this Badge helps you:

• Let homeowners know that your business is licensed by state industry experts
• Stand out from the competition while homeowners consider who to hire
• Add credibility to your company name, providing peace of mind to future clients

Here are the steps you can take to add a verified license to your Houzz profile. If you haven’t created a free profile on Houzz, sign up today and get ready to make a bigger impact with your business’ online presence.